The Pierce County Council Tuesday further adjusted the county’s 2009 budget due to lower-than-expected tax collections caused by the ongoing economic recession.

The year’s second supplemental budget closes an $8 million funding gap partly by reducing expenditures in the county’s General Fund to $276.9 million from $281.4 million. The action reflects an economic picture that has continued to worsen since councilmembers approved a previous $8 million in budget reductions on March 31.

Of the $8 million in savings needed, $4.5 million will come mostly from a 1.25 percent reduction in most county departments’ budgets that the County Executive proposed earlier this month. Pension savings and lower contributions to internal county funds will make up the remaining $3.5 million difference.

The Prosecuting Attorney’s Office and the Sheriff’s Department received less than the mandated 1.25 percent cut to help spare the county’s law enforcement and criminal justice functions from further reductions.

The council chose not to borrow any cash from the General Fund balance, the county’s savings account. The fund’s balance stands at about $23.6 million, or 8.3 percent of the total General Fund; county practice is to keep between five and 10 percent of general fund balance available for use in time of emergencies such as natural disasters.

An amendment asks the executive to provide weekly reports beginning July 6 on details of all grant applications and how federal and economic stimulus dollars are being used. Applications for grants of $100,000 or more would be required to receive council approval before they are submitted.